What Is A Director Disqualification Undertaking?

This undertaking has a similar effect to a director disqualification order but it is entered into voluntarily without the need for court proceedings.

The Secretary of State must be satisfied that the director is unfit to take part in the management of a company and be prepared to admit to being disqualified before accepting a disqualification undertaking.

To make a free enquiry relating to a potential Directors Disqualification matter, call us today on 01908 414990,  or complete our Free Enquiry Request for a confidential and no obligation discussion and let one of our expert team discuss your situation and the options available to you.

Top Tip: A breach of a disqualification order can have criminal implication including imprisonment for up to 2 years and/or fine.
Top Tip: Did you know that the undertakings are registered on a central register of disqualified directors to which the public have access?

What Other Actions Might Be Taken?

A director disqualification order or undertaking is only there to deal with the disqualification claim.

If there are other claims which may be bought against you in respect of the liquidated company, then the liquidator will need to prove these claims in

their own right. A liquidator cannot rely on the fact of a disqualification to try and bring other claims against a director.

Top Tip: However, it is important to be aware that the disqualification undertaking/orders are publicly advertised at Companies House and therefore in any other proceedings it can be referred to by way of evidence of misconduct.

What Are The Effects Of A Director Disqualification Order Or Disqualification Undertaking?

If A Director Disqualification Order Is Made, You Cannot, Without Permission Of The Court:

1) Be a director of any company registered in the UK
2) Be a director of an overseas company that has connections with the UK
3) Be involved directly or indirectly in formation, marketing or management a company
4) Be a liquidator or administrator of a company or act as an insolvency practitioner

There Are Other Restrictions If You’re Disqualified. You cannot:

5) Sit on the board of a charity, school or police authority
6) Be a pension trustee for a charity
7) Be a registered social landlord
8) Sit on a health board or social care organisation
9) Be a solicitor, barrister or an accountant

How As A Director Can I End The Court Proceedings?

  1. If the director can persuade the Secretary of State that he did not engage in “Unfit” Conduct.
  2. If the director succeeds in his defence at the Final Hearing.
  3. If the director enters into a director disqualification undertaking.

A director can give a disqualification undertaking at any stage in the proceedings to the Secretary of State. It has the same effect as a disqualification order and will put a stop to the court proceedings. The director will be expected to pay the costs and expenses incurred in the proceedings to the date of undertaking. The proceedings can be lengthy therefore costs can amount up. It is unlikely that Legal Aid will be available to cover director disqualification proceedings.

To make a free enquiry relating to a potential Directors Disqualification matter, call us today on 01908 414990,  or complete our Free Enquiry Request for a confidential and no obligation discussion and let one of our expert team discuss your situation and the options available to you.

Make A Free Enquiry

For a free enquiry, call us today on 01908 414990, email us at hello@altion-law.co.uk or complete our free enquiry request for a free, confidential and no obligation discussion and let one of our expert team discuss your situation and the options available to you.